HDFC is expected to raise $1 bn through ADR’s and preferential allotment. It plans to raise about one-fourth of the money through equity alloted on a preferential basis which will most likely be to its promoter HDFC Group as a public offer could see the promoters stake diminish. The promoter group has a current holding of 21.56% and the issue will increase its stake to 23%.
It currently needs a strategic investment of Rs 1390 crore to retain its stake and then it would go for a public offer of equity shares in domestic markets
as well as international markets like the US in the form of American Depository Shares(ADR)rasing the residual 2800 crore.
Source: The Economics Times
Friday, May 18, 2007
SBI allowed to reduce stake in subsidiaries
The lok sabha allowed SBI to reduce its stake in its seven subsidiaries from 55 percent to 51 percent. This will make their shares available to retail investors by listing on the stock exchanges
The State Bank of India (Subsidiary Bank Laws) Amendment Bill, 2006, which amends the State Bank of Saurashtra Act, 1950, the State Bank of Hyderabad Act, 1956 and the SBI (Subsidiary Banks) Act, 1959 was passed by a voice vote. The bill also raised the authorized capital of these banks to Rs 500 crore, allow them to issue bonus shares and augment the number of nominated directors representing shareholders to a ceiling of three.This also gives the chairman of SBI the power to appoint chairmen of its subsidiaries.
The government however clarified that it has and would dismiss any proposal of reducing stake in the subsidiaries below 51% as it would like to have majority voting power in these to be state owned companies after RBI transfers its holding to the government in August.
Tthe SBI has 100 per cent stake in State Bank of Hyderabad, State Bank of Patiala and State Bank of Saurashtra. Stakes in State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Indore -- SBI's stake varies from 75 per cent to 98 per cent.
Source: The Economic Times.
The State Bank of India (Subsidiary Bank Laws) Amendment Bill, 2006, which amends the State Bank of Saurashtra Act, 1950, the State Bank of Hyderabad Act, 1956 and the SBI (Subsidiary Banks) Act, 1959 was passed by a voice vote. The bill also raised the authorized capital of these banks to Rs 500 crore, allow them to issue bonus shares and augment the number of nominated directors representing shareholders to a ceiling of three.This also gives the chairman of SBI the power to appoint chairmen of its subsidiaries.
The government however clarified that it has and would dismiss any proposal of reducing stake in the subsidiaries below 51% as it would like to have majority voting power in these to be state owned companies after RBI transfers its holding to the government in August.
Tthe SBI has 100 per cent stake in State Bank of Hyderabad, State Bank of Patiala and State Bank of Saurashtra. Stakes in State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Indore -- SBI's stake varies from 75 per cent to 98 per cent.
Source: The Economic Times.
Foreign Private Equity firms to take India’s infrastructure story ahead
The monetary requirements for building infrastructure set by the government seems to find foreign support .The centre has earmarked $320 bn in infrastructure investments by 2012 which it proposes to accrue from its Foreign exchange reserves in partnership with foreign funds.
Various Private Equity firms has approved of investments pertaining to infrastructure in India .Citigroup and Blackstone will float a $5 billion fund with India’s Infrastructure Development Finance Company (IDFC) and India Infrastructure Finance Company (IIFC) .3i, another UK based PE firm, has put in $500 mn in projects with IIFC as its partner, in India .The SBI along with Société Générale of France plans to Rs 18 bn to invest in infrastructure companies .It also plans to venture into private equity with a target to invest Rs 42 bn in infrastructure .About 65% of these funds will be invested in equity .US based TransAsia infrastructure holdings will be another infrastructure dedicated fund to be launched by the end of 2007.
However all this is subject to approval by RBI who dictates an upper limit for External Commercial Borrowings(ECB’s) in India and also the decision to use the forex reserves is reserved with the RBI.
Source: www.economist.com
Various Private Equity firms has approved of investments pertaining to infrastructure in India .Citigroup and Blackstone will float a $5 billion fund with India’s Infrastructure Development Finance Company (IDFC) and India Infrastructure Finance Company (IIFC) .3i, another UK based PE firm, has put in $500 mn in projects with IIFC as its partner, in India .The SBI along with Société Générale of France plans to Rs 18 bn to invest in infrastructure companies .It also plans to venture into private equity with a target to invest Rs 42 bn in infrastructure .About 65% of these funds will be invested in equity .US based TransAsia infrastructure holdings will be another infrastructure dedicated fund to be launched by the end of 2007.
However all this is subject to approval by RBI who dictates an upper limit for External Commercial Borrowings(ECB’s) in India and also the decision to use the forex reserves is reserved with the RBI.
Source: www.economist.com
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